ST. JAMES GOLD CORP. Receives Exchange Approval of its Quinn Lake Property Acquisition in Newfoundland and Addresses Increase in Volume and Price of its Stock
ST. JAMES GOLD CORP. Receives
Exchange Approval of its Quinn Lake
Property Acquisition in Newfoundland
and Addresses Increase in Volume and
Price of its Stock
VANCOUVER, British Columbia, Jan. 29, 2021 /CNW/ -- St. James
Gold Corp. (TSX – V: LORD) (OTC: LRDJF) (FSE: BVU3), the
"Company" has been advised that TSX Venture Exchange has
accepted for filing documentation pertaining to an option agreement
(the "Agreement") dated January 7, 2021 between the Company and
Herb M. Froude, Robert Snook and Alexander S. Duffett (the
"Optionors"), whereby the Company can acquire a 100% interest in
certain mineral claims in Newfoundland, Canada known as the Quinn
Lake Claims (the "Property"). The Quinn Lake Claims are comprised
of two contiguous map-staked mineral licenses, for a landholding of
1,730 acres (the "Property") in the emerging prolific central
Newfoundland gold district. Entered into at arm's length, the Property
is not only adjacent to Marathon Gold.'s Valentine Lake property
where over 4 million ounces of gold have been evaluated to pre-
feasibility, but is also situated 17 km northeast from the Marathon gold
deposit and along strike of the main gold bearing structure in the
district, the Valentine Shear Zone. The Property is accessible by a
network of well-maintained seasonal gravel resource roads originating
at Millertown approximately 35 km to the north.
The Company knows of no reason for the increase in price and
volume that has occurred in their stock today other than the
Company's acquisition of the Grub line property originally announced
December 17, 2020 and the Quinn Lake property originally announced
January 15, 2021.
The Property is located within the Exploits Subzone of the Dunnage
tectonostratigraphic zone and is underlain by rocks of the Victoria
Lake supergroup, a structurally complex, composite collage of bimodal
Neoproterozoic to Ordovician arc-related magmatic and sedimentary
rocks. This structurally controlled gold district in central Newfoundland
is emerging as a major area of gold endowment and occurs within
a northeast-trending corridor defined by crustal-scale faults. Known
as the Rogerson Lake Conglomerate, the presence of Silurian syn-
orogenic polymict conglomerate reflects the preservation of syn-
orogenic upper crustal clastic sequences commonly associated with
orogenic gold vein systems. Gold deposits and other gold
occurrences in the district show that mineralization can be hosted with
volcanic and epiclastic rocks that are in fault contact with the
Rogerson Lake Conglomerate. This setting is very likely the most
prospective target at the Quinn Lake property.
To the southwest of the Property, the Rogerson Lake corridor hosts
Marathon Gold's Valentine Lake project where gold mineralization has
been traced over a distance of 18 km to several other deposits, while
along to the northeast at Wilding Lake, gold mineralization is also
hosted by quartz-tourmaline veins associated with shearing along a
thrust fault within the Rogerson Lake conglomerate. Situated between
these two projects, the local geology is inferred from geophysical
surveys and adjacent projects, and indicates the presence of the
Valentine Lake Shear Zone and the Rogerson Lake Conglomerate
which are spatially related and define the corridor favourable for gold
mineralization.
As commented by George Drazenovic, CEO of St. James Gold Corp.,
"We are excited to build on our recent Grub Line option agreement
and expand our portfolio of exploration gold assets in
Newfoundland. While there has been considerable past exploration
for volcanogenic base metal mineralization surrounding the Rogerson
Lake corridor, until recently, the Conglomerate has not seen
significant exploration for gold. In the past month alone, Marathon
Gold announced drill results of the Berry Zone and Narrows prospect
situated southwest of our property along this structural corridor, while
northeast of our property and on strike with Marathon Gold's Valentine
Lake project, Canterra Minerals just announced a planned $2.75 m.
work exploration program at their Wilding Lake gold project. We will
continue to monitor activity in this rapidly emerging gold region, further
develop the geological model, and put together a work program that
will ultimately target enhanced value for our shareholders."
Despite the emergence of recent discoveries along the gold-bearing
corridor related to the Valentine Lake Shear Zone and Rogerson Lake
Conglomerate, and geological mapping surveys conducted by the
Geological Survey of Newfoundland and Labrador, little work on the
Property has been conducted to date. In 1989, one of Noranda's till
sampling lines crossed the Property area and reported anomalous
values up to 528 ppb gold, while a 2013 review by Paragon Minerals
of existing airborne electromagnetic-magnetic survey data,
prospecting and ground IP geophysical survey recommended more
geophysical work focusing on the Rogerson Lake Conglomerate
contacts.
As stated by George Drazenovic, "Recent exploration by others on the
surrounding areas traced boulder trains with gold mineralization traced
to bedrock sources leading to significant gold discoveries. However,
past soil and stream sediment sampling efforts on the Property were
limited and focused on surficial materials that were not representative
of underlying bedrock; and geophysical targets, in spite of showing
some promise, have not been tested by drilling. Overall, past efforts
lacked continuity and the budgets to best reflect the risk-reward
scenarios for this strategically situated area, largely due to the fact
that most discoveries along this corridor have only materialized
recently. We intend to pursue a program that will test these theories
and unlock value for our shareholders."
Pursuant to the terms of the option agreement, total consideration
payable by the company is an aggregate of $65,000 cash over three
years, exploration totalling not less than $100,000 over three years,
and the issuance of an aggregate of 300,000 common shares of the
company as follows:
• 75,000 common shares on the approval of the option agreement
by the TSX Venture Exchange;
• 75,000 common shares on the first anniversary of exchange
approval;
• 75,000 common shares on the second anniversary of exchange
approval;
• 75,000 common shares on the third anniversary of exchange
approval.
The vendors will retain a royalty of 2-per-cent net smelter returns on
production from the Quinn Lake claims with one half of the total royalty
purchasable for $1,000,000 pre-production. Additionally, the company
will be required to issue an additional 500,000 common shares to the
vendors if at any time before or after exercise of the option the
company obtains a National Instrument 43-101 report estimating an
inferred mineral resource of not less than 100,000 ounces of gold.
A technical report for the Quinn Lake claims is being prepared in
connection with the acquisition and in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects and
the policies of the Exchange.
Historic information on the Quinn Lake claims, recent activity on
adjacent companies and governmental geological compilations
provide an indication of the exploration potential of the project.
Dr. Stewart Jackson, P.Geo., Senior Technical Advisor Geologist and
Qualified Person within the meaning of National Instrument 43-101
Standards of Disclosure for Minerals Projects, has reviewed and
approved the technical and scientific information presented herein as
accurate and approved this news release.
About St. James Gold Corp.
St. James Gold Corp. is a publicly traded company listed on the TSX
Venture Exchange focused on creating shareholder value through the
discovery and development of economic mineral deposits by acquiring
prospective exploration projects with well delineated geological
theories, integrating all available geological, geochemical and
geophysical datasets, and funding efficient exploration programs. The
Company currently holds an option to acquire a 100% interest in 29
claims covering 1,791 acres in the Gander gold district in north-central
Newfoundland adjacent to New Found Gold Corp.'s Queensway North
project, and an option to acquire a 100% interest in 28 claims covering
1,730 acres in central Newfoundland adjacent to Marathon Gold's
Valentine Lake property.
George Drazenovic, CPA, CGA, MBA, CFA
CEO
St. James Gold Corp.
For further information, please contact:
George Drazenovic, Chief Executive Officer
Tel: 1 (800) 278-2152
Email: [email protected]
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION
SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
St. James Gold Corp.
For further information, please contact:
George Drazenovic, Chief Executive Officer
Tel: 1 (800) 278-2152
Email: [email protected]
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james-gold-corp-receives-exchange-approval-of-its-quinn-lake-
property-acquisition-in-newfoundland-and-addresses-increase-in-
volume-and-price-of-its-stock-301218387.html
SOURCE St. James Gold Corp.
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%SEDAR: 00005795E
CO: St. James Gold Corp.
CNW 18:27e 29-JAN-21